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Companies, investors and professional advisers are broadly in favour of European legislation to strengthen shareholdersâ rights.

The European internal market commission published a summary of the responses it received to a consultation document on boosting investors’ ability to ask questions at annual meetings, file resolutions and cast votes. While some respondents were opposed to any EU legislation on these issues, preferring non-binding recommendations or the promotion of best-practice codes, a majority endorsed the need for a regulatory push.

However, there was consensus that any legislation should focus on high-level principles rather than harmonising detailed aspects of company law.

There was strong support for the idea that the EU should introduce minimum standards for the disclosure and dissemination of annual meeting documents. Companies should be required to state the date, time and place of the meeting, describe how votes could be cast or questions asked, and facilities put in place for shareholders to participate through a webcast. Most said companies should be required to provide relevant documents at least a month before the meeting.

Another proposal that found favour was the idea that companies maintain a specific section on their website containing annual meeting information.

Respondents thought the right of shareholders to ask questions should be established by directive, although limits should be set on the ability of investors to table motions. Requiring resolutions to be backed by 5% of the share capital was the most popular means of achieving this.

An overwhelming majority of respondents thought that EU member states should be required to introduce proxy voting within their national rules.

The shareholder rights initiative is part of a wide-ranging effort by the EU to harmonise company law and a draft directive on the issue is expected this year. However, the EU has remained silent on the abolition of multiple voting structures.